What's next for MMA?

[MEC407]

Massive layoffs at both the US and Canada operations...

Sorry for asking the obvious. Is this a prediction or a report of activity?

Here is an article from iPolitics.ca with more info:

The company involved in the deadly Quebec train derailment has laid off one-quarter of its workforce in the province.

A union representing employees at the Montreal, Maine and Atlantic Railway says the company has laid off 19 of its 75 workers in Quebec.

The laid-off employees — 17 workers and two managers — received their notices Tuesday.

Daniel Roy, the Quebec director of the union, has denounced what he calls the company’s cavalier attitude. He says MMA did not offer any advance notice.
. . .
A company official said the layoffs are temporary, because of the line shut down since the July 6 disaster.

When contacted by phone in Chicago, a spokeswoman for MMA said chairman Edward Burkhardt has previously warned of layoffs in both Farnham, Que., and in Maine.

“This is because of the track break at Lac-Megantic and they intend to rehire the employees when the line is re-opened,” she added.

Read more at: http://www.ipolitics.ca/2013/07/17/mont ... bec-staff/" onclick="window.open(this.href);return false;

[MEC407]

And from The Portland Press Herald:

The Montreal, Maine & Atlantic Railway will lay off dozens of workers in Maine and Quebec in the wake of the July 6 tragedy in Lac-Megantic, Quebec, according to a company official.

Gaynor Ryan, vice president of human resources for MMA, said the railway will lay off 79 of its 179 total employees while tracks are inspected and repaired if necessary.

Read more at: http://www.pressherald.com/news/Some-MM ... yoffs.html" onclick="window.open(this.href);return false;

[MBTA1016]

And from The Portland Press Herald:

The Montreal, Maine & Atlantic Railway will lay off dozens of workers in Maine and Quebec in the wake of the July 6 tragedy in Lac-Megantic, Quebec, according to a company official.

Gaynor Ryan, vice president of human resources for MMA, said the railway will lay off 79 of its 179 total employees while tracks are inspected and repaired if necessary.

Read more at: http://www.pressherald.com/news/Some-MM ... yoffs.html" onclick="window.open(this.href);return false;

Is this the beginning of the end for MMA? They are laying off people before this investigation is done and over with. From the looks of it they won't be a railroad in a couple more years.

[Highball]

A Class Action Lawsuit has been initiated.

This news link from CBC........

http://www.cbc.ca/news/canada/new-bruns ... -suit.html" onclick="window.open(this.href);return false;

[MBTA1016]

That's probably the end of MMA now, even with Irving oil and the other companies listed this doesn't look good at all for MMA

[MEC407]

Reposted from the oil train thread in the Pan Am forum:

Sound of first shoe dropping, from Bloomberg News:

Montreal, Maine & Atlantic Railway Ltd. is evaluating whether the company remains viable after the July 6 crash of one of its trains in Quebec that killed as many as 50 people, Chairman Ed Burkhardt said.

“Whether we can survive is a complex question,” he said today in a telephone interview from the Rosemont, Illinois, offices of Rail World Inc., the closely held company’s parent. “We’re trying to analyze that right now.”

For the whole story, see:

http://www.bloomberg.com/news/2013-07-1 ... ys-1-.html" onclick="window.open(this.href);return false;

PBM

[newpylong]

They're all done.

Who will get the east/west line - NBSR? How about north/south?

[KEN PATRICK]

i would not be surprised if criminal indictments were handed down for the management and the 'crew'. ( always thought 'crew' meant more than one person).
'reckless endangerment' /" criminal negligence'. i suspect a grand jury has been established to review the facts.
i'm sure mm&a is preparing a chapter 7 filing as we post. since the shares are now worthless, the management should also be wary of civil suits from other shareholders. such an avoidable mess. again, as i believe is inherent in many short lines, penny-wise thinking. they had a golden goose in the oil moves. should have spent a few dollars to protect it. ken patrick

[MEC407]

They're all done.

Who will get the east/west line - NBSR? How about north/south?

I'm sort of curious if PAR might have an interest in the Searsport Branch, which runs roughly parallel to PAR's Bucksport Branch. I think the state of Maine would have a very intense interest in keeping the Searsport Branch operational or at least potentially operable, perhaps to the point of buying it and then leasing it to another operator. In a situation like that, I think it's probably a given that PAR would at least bid on the operations contract. I'd expect several other operators to bid as well.

I have no doubt that Eastern Maine Railway (NBSR's U.S. operations entity) would be interested in the east/west line... and NBSR's other U.S. entity, Maine Northern Railway, would probably be interested in the north/south line.

Looking at the present-day MMA system map, one can get an idea of who the "players" are and which moves they might like to make.

[MEC407]

From the Bangor Daily News:

The freight hauler whose fiery runaway train caused the death of 50 people in a Quebec town earlier this month told the 79 workers laid off after the disaster that rehiring will occur within a month, unemployment workers said Wednesday.

“They are hearing two to four weeks, but they are skeptical and think that it will be much longer,” said Margaret Henry, district manager for the U.S. Railroad Retirement Board, the agency that will pay the unemployment benefits for as many as 60 Americans laid off from Montreal, Maine and Atlantic Railway.
. . .
The laid off workers were polite but grim. All who were approached during the session at the Penquis building on North Street declined to be interviewed. Several declined to be photographed.
. . .
“What do you expect us to say? [Montreal, Maine and Atlantic Railway] is going under, and we want a job,” said one worker who declined to be identified. “They won’t tell us that, but we know what is going on.”

Read more at: http://bangordailynews.com/2013/07/24/n ... -disaster/" onclick="window.open(this.href);return false;

[gpp111]

I think it is probably all over. MM&A will declare bankruptcy at some point when the pressure is simply too great.

Irving will get East Millinocket to Brownville Junction, they have trackage rights already. The State of Maine will buy the Searsport branch and will probably designate Irving as the operator.

The Moosehead subdivision from Brownville Junction to Lac Megantic will be scrapped, since there is virtually no traffic generated on this line, it is all overhead traffic that can easily be diverted elsewhere. The scrap value of the rail on the Moosehead is significant.

St Jean to Lac Megantic will be preserved and given to another short line to operate.

I dont see any other way out. It is unfortunate.

[Ridgefielder]

The Moosehead subdivision from Brownville Junction to Lac Megantic will be scrapped, since there is virtually no traffic generated on this line, it is all overhead traffic that can easily be diverted elsewhere. The scrap value of the rail on the Moosehead is significant.

I'm not too sure about that. Can the St.L. & A. (ex-Grand Trunk) through Dixville Notch handle oil trains? I think the State of Maine steps in and buys the line before they let it be scrapped. If they haven't let the rails get lifted on the Mountain Sub, the Low Road to Augusta, or the Bangor-Ellsworth portion of the Calais Branch, I find it hard to believe they'd step aside and let the Moosehead get melted down to make dishwashers.

[MEC407]

Yes, but an important distinction is that all of the Maine-owned lines you mentioned exist solely within the state of Maine. The only exception is the Mountain Division, and you'll note that Maine only purchased the section within Maine.

As far as MMA's tracks are concerned, I can't see the state purchasing anything outside the state or outside the country. I'm not sure if that would even be permissible under Maine law. Someone else could purchase the stretch from Lac-Mégantic to the border, but who would want it at this point?

[CN9634]

I think it is probably all over. MM&A will declare bankruptcy at some point when the pressure is simply too great.

Irving will get East Millinocket to Brownville Junction, they have trackage rights already. The State of Maine will buy the Searsport branch and will probably designate Irving as the operator.

The Moosehead subdivision from Brownville Junction to Lac Megantic will be scrapped, since there is virtually no traffic generated on this line, it is all overhead traffic that can easily be diverted elsewhere. The scrap value of the rail on the Moosehead is significant.

St Jean to Lac Megantic will be preserved and given to another short line to operate.

I dont see any other way out. It is unfortunate.

With the oil there is great value for that line. Irving will buy it all the way to Montreal

[F-line to Dudley via Park]

The Moosehead subdivision from Brownville Junction to Lac Megantic will be scrapped, since there is virtually no traffic generated on this line, it is all overhead traffic that can easily be diverted elsewhere. The scrap value of the rail on the Moosehead is significant.

I'm not too sure about that. Can the St.L. & A. (ex-Grand Trunk) through Dixville Notch handle oil trains? I think the State of Maine steps in and buys the line before they let it be scrapped. If they haven't let the rails get lifted on the Mountain Sub, the Low Road to Augusta, or the Bangor-Ellsworth portion of the Calais Branch, I find it hard to believe they'd step aside and let the Moosehead get melted down to make dishwashers.

Maine's been very good about buying up all extant track it can get its hands on. And they started with the highest % of privately owned mileage left of any state in New England. They will definitely step in and buy every last inch of the huge MMA mileage in its borders (so will VT for its small portion) and try to find an operator to keep it active even if they take some *reasonable* losses trying to prop it up. This is, after all, the state that keeps tilting at windmills to varying degrees for the Mountain Div. and Calais Branch. Retaining in-state traffic on the MMA main isn't quite as far-fetched as those two projects, especially with a clearance route and former trans-Canada passenger routing like this.

But boy, G&W stock is going to shoot up bigtime if SLA/SLQ is the primary beneficiary of diverted thru traffic from a dismembered/scattered-to-bits MMA. They've got the superior physical plant to make an immediate play for the thru traffic.